§ The Earl of LAUDERDALEMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how the United Kingdom share of the proposed 2,000 megawatt cross-channel electricity cable link is to be funded.
§ Lord STRABOLGIMy Lords, the capital cost of about £250 million will be shared equally between the Central Electricity Generating Board and Electricité de France. The financing of the CEGB's share would be for consideration in the light of the electricity supply industry's overall financial requirements during the construction period.
§ The Earl of LAUDERDALEMy Lords, I thank the noble Lord for that reply. Are we to take it that, quite possibly, the Government will find it worth while to give to the CEGB some kind of subsidy towards the British share? Can he also tell us whether there is any expectation of Community finance towards this, in that the Community's energy policy is bound to result from this very splendid and imaginative enterprise?
§ Lord STRABOLGIMy Lords, no such subsidy has been sought by the Generating Board from the Government, nor is this likely. There has been no formal indication as to whether the link would qualify for EEC finance. A decision to use any facility that became available would depend on several factors, including the availability and the cost of other forms of finance.
§ The Earl of LAUDERDALEMy Lords, may we take it from that that the Government will not miss the opportunity of getting something back from the Community for a very constructive contribution to its energy needs in this proposal?
§ Lord STRABOLGIYes, my Lords, certainly. But the finance is, of course, a different matter. The Government have, as yet, taken no firm decision on the link, but it was discussed during the French President's visit to London last December. My right honourable friend the Prime Minister told another place that he and the French President had noted that the generating authorities in our two countries are in negotiation towards an agreement, and expressed the Government's support for this.
§ Lord HANKEYMy Lords, while greatly welcoming this development, may I ask the noble Lord whether the cable will be well buried to protect it against trawling and anchors? Will some measure be taken to prevent it from affecting ships' compasses?
§ Lord STRABOLGIYes, my Lords. There is, of course, if I may remind the House, a cable at present. There is a 160 megawatt link which was constructed in 1961, but this has been found to be vulnerable to ships' anchors. It is intended that the 2,000 megawatt cable will be embedded to a depth of two metres throughout its length. Trials are taking place and these are not yet complete, but no insuperable obstacles are foreseen.
§ Lord PARGITERMy Lords, may I ask my noble friend whether or not this will affect the programme for power production in this country?
§ Lord STRABOLGIYes, my Lords; it should, of course, bring great benefit to both this country and France. Even the smaller cable which is there meant that during the severe winter of 1962–63 French electricity was able to help the United Kingdom's grid system, and in the long summer of 1976 we were able to reciprocate and export supplies to make up for loss of capacity in France's hydroelectric stations.
§ Lord HANKEYMy Lords, may I ask for an answer to my second question? Presumably, such a high-powered direct current cable will affect ships' compasses, and is this being guarded against?
§ Lord STRABOLGIMy Lords, I am afraid that I could not possibly answer that question. But I will go into it and let the noble Lord know.
§ Lord FERRIERMy Lords, will the noble Lord accept the congratulations of somebody on this side of the House, who is not ignorant of these matters, on the way in which he has handled these most fascinating questions?
§ 2.40 p.m.
§ The Earl of LAUDERDALEMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government on what principles they will judge whether the proposed cross-channel electricity cable is likely to be viable economically and when they expect construction to start.
§ Lord STRABOLGIMy Lords, the Government will consider the forecast costs in relation to the anticipated benefit from electricity trading between the Central Electricity Generating Board and Electricité de France, including prospects for the export of coal-generated electricity to France; and the contribution which the link would make towards meeting demand in this country. The CEGB expect that construction, which would be subject to Government investment approval, would not start before 1979.
§ The Earl of LAUDERDALEMy Lords, while thanking the noble Lord for that reply, may I ask him whether it seems likely that this link will make it certainly prudent, if not necessary, to have extra energy storage capacity on hand? Also, can he tell us whether the French will be entirely free to resell elsewhere in Europe the energy that they import from us?
§ Lord STRABOLGIMy Lords, I understand that there is no associated 1036 storage requirement. With regard to the French, negotiations are continuing between the French and British electricity boards. The link would, of course, have some effect on the opportunity for energy trading between France and neighbouring Continental countries.
§ The Earl of LAUDERDALEMy Lords, may we take it from that answer that the feasibility studies do not suggest that there might be a need for extra storage capacity, in order that the link can be put to the best possible use? Can the noble Lord also add to his reply to an earlier question about the depth at which the cable is to be buried? He said just now that it would be buried to a depth of two metres. Is he not aware that oil and gas pipelines buried to that depth in the North Sea have been subsequently exposed by the scouring action of water on the seabed?
§ Lord STRABOLGIMy Lords, with regard to the second question, I understand from the Central Electricity Generating Board that further embedding and disembedding trials in the Channel will be undertaken this summer, and I am sure that the point which the noble Earl has made will be borne in mind. The noble Lord asked me whether the link would affect the board's requirements for pumped storage stations. As I said before, I understand that there are no associated storage requirements.
§ Lord ELTONMy Lords, is the noble Lord aware that in Norway they are currently researching and about to produce a means of covering oil pipelines with an eight metre wide carpet of concrete which is said to be more proof against the scouring action and also cheaper than burying? Will the noble Lord's Department be in touch with them to consider this method?
§ Lord STRABOLGIYes, certainly, my Lords. We shall take note of what the noble Lord has said. There is a 130 kilometre long twin electric power cable under the Skagerrak between Norway and Denmark. There are other cables of this kind all over the world. There is one between the North and South Islands of New Zealand, and there are two connecting some of the Canadian islands with the mainland.
§ Lord BOWDENMy Lords, may I ask my noble friend whether it has been decided who is to make the cable? Is the cable to be made in this country or elsewhere? Also, who is to make the terminal equipment which is so necessary?
§ Lord STRABOLGIMy Lords, it is a little premature to answer that question. First we have to decide whether or not to go ahead with the project.